Cash ISA Transfer

RobH2010

I want to transfer my Cash ISA from Natwest (AER 1.75) to a building society ISA.

The best options seem to be fixed rate ISAs. You can't withdraw money from these for the term of the fixed rate which is fine by me. I've found two decent ones from Nationwide & Skipton (sorry can't do links as a new user).


Some questions I have

For the Skipton one the T&C says that it is 'A share account which confers membership rights and is subject to the Rules of the Society'. Is this just building society jargon, or does it actually mean it's tied up in stock and shares?

The Nationwide one appears to forbid payments in - is this usual for Fixed ISAs?

What happens when the fixed period ends with these accounts. I can't find anything on the T&C about the end of the period. Will the money get stuck in a bad rate ISA and then will I get charged lots to move the ISA somewhere better.Are they likely to try and pull any fast stuff like that so that I can't move it to another account?

Is there anything else I should watch out for with fixed rate accounts?

Thanks
Rob

alastair_h

RobH2010 wrote: »

For the Skipton one the T&C says that it is 'A share account which confers membership rights and is subject to the Rules of the Society'. Is this just building society jargon, or does it actually mean it's tied up in stock and shares?

This sounds like the usual spiel for becoming a member of the building society.

RobH2010 wrote: »

The Nationwide one appears to forbid payments in - is this usual for Fixed ISAs?

What happens when the fixed period ends with these accounts. I can't find anything on the T&C about the end of the period. Will the money get stuck in a bad rate ISA and then will I get charged lots to move the ISA somewhere better.Are they likely to try and pull any fast stuff like that so that I can't move it to another account?

Is there anything else I should watch out for with fixed rate accounts?

They usually only allow one payment into a FR ISA and then no further payments. On completion of ISA term they usually give you notice that the term is coming to an end, giving you the option to transfer out on completion or re-invest with them in another product. Some do revert to a normal variable rate cash ISA (usually complete with poor interest rate), so don't forget about it.

Only thing to watch out for is if you do need access to the money, some won't allow this or it's at the loss of interest (eg 30 / 45 / 60 days). Also the interest rate might go up (I wish), if you tied it up for a long while you could "potentially" loose out.

david78

RobH2010 wrote: »

For the Skipton one the T&C says that it is 'A share account which confers membership rights and is subject to the Rules of the Society'. Is this just building society jargon, or does it actually mean it's tied up in stock and shares?
Rob

As DH says, this just means you will be a member of the building society, its nothing to do with the stockmarket. You will also be a member with the Nationwide if you open their ISA.

RobH2010 wrote: »

The Nationwide one appears to forbid payments in - is this usual for Fixed ISAs?
Rob

With the Nationwide you can't add extra payments to the Fixed rate accounts. However you can open another fixed rate bond or variable rate ISA account with the Nationwide and put new money in there. They count all ISA accounts as one pooled ISA so you would not be opening multiple ones in the same year.

lisyloo

You might want to look at first direct. I don't think they have penalties.